Important Economic Events Affecting Crypto Market This Week: CPI Report, ETF Decision, and Additional Factors
As the new week dawns, the United States Economic Calendar is teeming with significant events that will once again bring inflation into focus. The eagerly awaited Consumer Price Index (CPI) report, set to be released on Thursday, will determine whether inflation continues its downward trajectory or stalls around the 3% mark.
This article will delve into a comprehensive analysis of the upcoming economic events, exploring their potential impact on the US markets and examining how they will affect various sectors, including the cryptocurrency space and banks.
The Impact of the CPI Report
The CPI report holds immense importance as it will enable the markets to assess the Federal Reserve’s policies and its efforts to reduce interest rates. Analysts have predicted a 0.2% rise in consumer prices for December, which could impede the progress made in curbing inflation, potentially pushing the annual price increase up to 3.3% and 3.1%. This could have a ripple effect on the Federal Reserve’s policies and its attempts to lower interest rates.
The Monthly Budget Deficit
The forthcoming announcement of the monthly budget shortfall on December 11 is expected to reveal a staggering figure of $62.5 billion. This will contribute to the already record-breaking national debt of $34 trillion. Economists and financial experts have expressed concerns about the potential impact on the economy and financial markets. High levels of debt could result in higher interest rates and inflationary pressures, potentially causing a slowdown in economic growth. This would make borrowing money more expensive for individuals and businesses, while also eroding the purchasing power of consumers.
ARK 21Shares Spot Bitcoin ETF
The decision by the Securities and Exchange Commission (SEC) regarding the ARK 21Shares spot Bitcoin ETF on December 10 is eagerly anticipated. Analysts are confident that the regulator will approve all applications simultaneously to prevent any first-mover advantage. However, a denial could lead to a significant decline in the cryptocurrency market, while approval could initially trigger a price surge.
Bank Earnings Calls
Friday, December 12, will see a flurry of bank earnings calls. Wells Fargo, Bank of America, BlackRock, BNY Mellon, Citigroup, and JPMorgan Chase will all release their quarterly reports during this time. These events are unlikely to have a substantial impact on the cryptocurrency markets unless there is an SEC denial that triggers a major decline. However, they could provide valuable insights into the health of the banking sector and potential future trends.
The Much-Awaited Bitcoin ETF Approval
The Securities and Exchange Commission has rejected numerous ETF applications thus far, and this trend is expected to continue into 2024. This has dashed the hopes of many investors, with the main reason being the surge in the value of Bitcoin, which is currently trading at $43,643. However, there is optimism among prominent figures in the crypto space that ETF approval will finally be granted on January 11. The effects of approval would be highly beneficial for the crypto market, while a rejection would result in losses.
In summary, key economic events in the US this week include the release of the CPI report, the announcement of the monthly budget deficit, the SEC decision on the ARK 21Shares spot Bitcoin ETF, and bank earnings calls. These events have the potential to impact inflation, interest rates, financial policies, crypto markets, and the overall health of the banking sector.
Tags: Crypto Regulations